Hammond mayor: Governor key to Cabela's deal

HAMMOND | With Monday's deadline near for Cabela's to buy land for a store in Hammond, officials working behind the scenes were upbeat Thursday, one day after saying they had grown increasingly concerned the deal would fall apart.

In the mayor's office, the concerns reached a fever pitch Wednesday, with Mayor Thomas McDermott Jr. publicly denouncing what he called destructive rumor-mongering while privately pleading with supporters to speak out.

But on Thursday, the anxiety seemed to dissipate after McDermott said he received a call from state-level economic development officials expressing tentative support for the $78 million Cabela's project in Hammond.

McDermott said Thursday afternoon he believes the state's assurance would be enough to persuade Cabela's officials to go through with their agreement to buy the 100-acre Woodmar Country Club.

"What you've got going on is about five different things trying to affect this project, and it all boils down to Gov. Daniels," McDermott said. "If he supports this project, it goes forward. If not, it falls apart."

Cabela's officials make no secret they expect public support for the project, both from the city and the state. While city officials have promised to do everything they can, McDermott said the deal won't happen without the level of financial support only the Daniels administration can give.

Essentially, Cabela's wants state officials to pledge to use several years' worth of the sales taxes the store generates to build infrastructure that exclusively benefits the store and surrounding areas. The Woodmar property lies within a specially designated area, one of a handful in Indiana, that can tap sales tax to assist with development.

Detractors call it "corporate welfare." Proponents call it a "public-private partnership."

Cabela's near both Detroit and Kansas City have proven to be "destinations," drawing millions of visitors and spreading economic growth in their wake. According to Cabela's officials, the Hammond store would create hundreds of new jobs.

 The sale of the country club was opposed by a minority of the club's members. And obstacles to the deal, both political and commercial, have continued to mount in the run-up to Monday's official closing date.

Another large "destination retail" sporting goods store, Bass Pro Shops, released plans Thursday to build in Portage's Ameriplex development park. The development is not within a sales tax increment financing district, as is Cabela's.

"Unfortunately, all these goofy rumors are flying around, and it's going to screw up the deal," Thomas McDermott Sr. said earlier this week. "I sure hope all this ---- doesn't upset the apple cart."

McDermott Sr. helped attract Cabela's to the Woodmar site.

A spokesman for Cabela's said Thursday that, generally speaking, he was not aware of anything that would stand in the way of the company closing Monday on the Woodmar property.

Jane Jankowski, an aide to Gov. Mitch Daniels, declined to comment Thursday, saying the matter was in the hands of the Indiana Economic Development Corp.

IEDC spokesman Weston Sedgwick said his organization is continuing negotiations with Cabela's, although he could not comment on the specifics of the talks.

Sedgwick declined to comment on Mayor McDermott's statement that the state was initially "uncomfortable" with the amount of state incentives Cabela's has asked for. "We look forward to continuing our talks with the company and future negotiations," Sedgwick said. "Obviously, nothing is finalized."

Cabela's officials could not corroborate Mayor McDermott's statements the company would need strong assurances of state incentives before it would finalize its purchase of Woodmar.

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